2008 UPGRADES DRIVEN BY POSITIVE REGULATORY RELATIONS

摘要

The industry's average credit rating remained at a solid bbb in 2008 for the fifth consecutive year, although the year's 50 ratings actions were well below the yearly average of 115 from 2004 through 2007, 300 in 2002, and 253 in 2003. (See Figure 1 and Table 1.)rnDowngrades outnumbered upgrades for the first time since 2004, albeitrnby the narrow margin of only two. Negative regulatory relations and weakened financial metrics produced 26 downgrades-18 in the first half of the year andrneight in the second half. Positive regula-tory developments along with im-proved financial metrics, a focus on core utility operations, and well-man-aged capi-tal spending accounted for most of the year's 24 upgrades.rnWhile 20 percent of the industry has negative outlooks, 80 percent has either a stable or positive outlook, according to Standard & Poor's (S&P). Management of elevated capital expenditure (capex) plans continues to be closely monitored by the ratings agencies.